Google's newly announced BARD AI system is mentioned at 12:25
In this episode we see why Google has called a code red because of ChatGPT but why? Why is ChatGPT such a threat? And what are Google doing about it? In this episode we find out.

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Writer: Meehan Kathan and Dagogo Altraide 
Editor: Tanzim Uddin and Dagogo Altraide

Hi, welcome to another episode of ColdFusion.

So we're right between that house and this house.

It was a small company run out of the garage of Susan Wojcicki, who is, interestingly, the current CEO of YouTube.

Simply from recognizing the value of organizing information on the web, Google managed to grow from a few tinkering PhD students to a formidable giant that now owns over 90% of search and carries out over 8 billion search queries per day.

For 2 decades now Google has been the undisputed king of web searches.

The term Google has been synonymous with searching for information.

Need a recipe or a movie review, or just settling an argument with a friend?

So What exactly could make a massive company like Google panic, so much so that they issued an internal code red?

With Microsoft's plans to integrate the AI system into their search engine, Bing, Google search may face a serious threat for the first time in its history.

Could this be 1 of the biggest technology story arcs in history?

While making this episode, I kind of felt like we're at the beginning of an AI war.

So in the following, we'll learn what Google might do about the situation.

And we'll also see why exactly ChatGPT is such a threat to Google's central business model.

Going to transform just about every industry including education.

ChatGPT passed the US medical licensing exam, the bar exam and got a B on a Wharton MBA paper.

A conversational chatbot capable of responding to any query in a human-like manner always seemed to be a technology of the future for the masses anyway until ChatGPT.

Following its release, ChatGPT has garnered huge attention from around the world.

To give you an idea of the scale of this moment, ChatGPT has been the fastest app in history to reach 100 million users.

It's taken just 2 months, whereas TikTok took 9 and Instagram,

A rapid adoption rate is a classic early signal of a disruptive product or technology.

Since then, it's been updated and is better than ever.

However, as I previously stated, it's important to know that it's not perfect and may sometimes give bias or outright incorrect information.

If you want to see that episode on ChatGPT and to open AI's views on the future of these systems in more detail, the link for that episode can be found in the description below.

Namely, by putting this technology in their search engine, Bing.

The massive implications of this will be discussed later in the episode.

But for now, we've got to find out something.

How did Microsoft and OpenAI get involved with each other in the first place?

The alliance between the 2 started in 2019 when Microsoft invested $1 billion into OpenAI.

This was very crucial for both companies.

OpenAI needed some cash as well as the computing power of Microsoft's Azure cloud services.

This allowed the AI research firm to scale and drastically reduce its operating costs.

Microsoft on the other hand was able to acquire OpenAI's intellectual property portfolio in the process.

In essence, Microsoft now has access to some of the world's best AI technology, giving it a competitive edge over other major players in the tech industry.

Since then, Microsoft and OpenAI have been working together on various projects.

CEO Satya Nadella is saying its impact will be, quote, at the magnitude of the personal computer, the internet, mobile devices, and the cloud.

When Microsoft made the bombshell announcement that they were integrating ChatGPT into Bing, Google was in shock.

An emergency code red situation was declared and I could imagine the frantic meetings.

1 Google executive told the New York Times, it was a make or break moment for the company.

But wait, this is Google we're talking about.

The company with far and away the world's leading search engine, they dominate 90% of search queries.

Microsoft, with their dinky little Bing, accounts for only 9% of worldwide desktop searches in

Google is looking at what might happen in the future and not what's happening today.

Chatbots are not new, but the level of performance seen by ChatGPT definitely is.

The thing that sets it apart from the MediCore chatbots of the past is that it's a generative pre-trained transformer, or GPT.

In plain language, it just means that it's been trained on billions of parameters and petabytes of text.

This training allows the system to generate new text in a way that mimics the understanding of a wide range of queries and can respond accordingly.

ChatGPT or the inevitable flood of AI assistance has the potential to revolutionize how we interact with search engines.

Microsoft could see this as well, and that's why they've been betting on OpenAI and its technology.

For a second, I just want you to stop and think about it.

If an AI-powered search engine gave you the specific information or answer you want in a concise manner, but you could also ask further questions and drill down into the details that you want.

You don't have to click through a bunch of links and waste your time.

Right now, if you want a specific answer, You have to Google what you're looking for, get a bunch of results that may or may not fit, and if it's specific enough, you end up going to a forum anyway and searching through all the answers there.

In this AI-powered search engine world, the answer would already be synthesized for you, and this is because the AI has already crawled through the whole web and read it already.

And I think this is where AI-powered search will excel the most, for very specific problems.

Obviously, if you want to know something political or something that could have a slant or bias, that's another story.

It has Google shook a little bit, calling a code red.

Chat GPT is potentially an existential threat to Google's business because Google relies 60% of its revenue on search, and ChatGPT offers an alternative to search, which is a one-stop question answering shop powered by AI.

But this could change the game of search entirely, which is core to Google's business.

If open AI integrates a ChatGPT-like language model into Bing's search engine, people will just be able to find the results that they need without having to scroll through a flat page of search results that are littered with ads.

This may be good news for users, but for a company like Google, it's very bad news.

of their revenue comes from Google search.

If the magnitude of this income becomes significantly damaged, it could be catastrophic.

Google's business model is centred around advertising.

It's been their long-standing primary source of revenue.

By charging companies for promoted search links or AdSense links on websites, the company has built a lucrative business model.

But it's clear that ChatGPT's integration with Bing has the potential to disrupt this entire system.

If that doesn't sound bad enough, the creator of Gmail himself said that ChatGPT will destroy Google's business in 2 years.

While I don't think this is the case because Google isn't going to just sit still as you'll soon see, it still is interesting that he said this.

In January of 2023, the Department of Justice filed an antitrust lawsuit against Google.

They stated, quote, Google has used anti-competitive, exclusionary, and unlawful means to eliminate or severely diminish any threats to its dominance over digital advertising technologies.

This isn't to mention the 12, 000 Google employees that were recently let go.

This is probably due to higher interest rates and a changing market.

But still, all things considered, these are some of the biggest challenges Google has seen in its 20 years of dominance.

So it's no surprise that the company issued the code red.

They even sought help from their co-founders, Larry Page and Sergey Brin, both of which had stepped down from their executive positions back in 2019 and have not been actively involved in the company's operations.

According to the New York Times, the pair was invited to an executive meeting to strategize on how to integrate chatbot features into Google's search engine.

They were also said to be devising a plan for the company's AI operations.

According to Forbes, Sergey Brin has requested access into Google's internal code and he was taking a look at

This could indicate that Google will be using Lambda in their response to OpenAI.

They're going to be investing an extra $10 billion into OpenAI.

As part of the new agreement, Microsoft will receive

of OpenAI profits until it recoups its investment and then will hold a 49% stake in the company afterwards.

Unfortunately, this is the antithesis of what the OpenAI company originally stood for.

If all goes well, this may turn out to be 1 of the best business deals of the decade.

Right now, Chrome is the default option for Android, and Google pays Apple huge sums of money just to be the default option on iPhones and macOS devices.

This has no doubt worked wonders for Google in the past, especially since there's been no real alternative.

But now that Bing could eat some market share, I think Google will use their default status and dominating market share to their advantage while they hit back.

This is how I think things may play out if Google gets their act together.

So Google are probably going to rapidly prototype and release an AI-powered search engine competitor integrated into Google Chrome.

And because Google Chrome is the default browser for so many, This new tool will gain widespread adoption without much effort and end up killing Bing AI before it really gets a chance to start.

Now I could be wrong, but it just seems like Google has to make a major move like this.

It's reported that Google is working on 20 AI projects, including image generation tools, a product for prototype app testing, and even a green screen mode for YouTube creators.

1 of the most interesting pieces of research is MusicLM, an AI that can transform whistled or humming melodies into a certain style which is described in text.

So it's clear that Google isn't sleeping.

In a staff memo, CEO Sundar Pichai wrote, quote, I am confident about the huge opportunity in front of us.

Thanks to the strength of our mission, the value of our products and services, and our early investments in AI, to fully capture it, we'll have to make some tough choices.

It seems like Google may be forced to put the safety issues on the back seat and will just start unleashing the AI products.

They could turn the playing field around quite quickly.

According to CNBC, Google is currently testing a chat GPT competitor called Apprentice Barred internally with its employees.

And also, a group of engineers have left open AI and started their own AI company and the first product, Claude, is similar to ChatGPT but better in some cases.

The company called Anthropic AI has already raised over 1 billion dollars and guess what?

But for those of you who are really into technology, something doesn't add up here.

Google has been working on AI technology for a long time, even as far back as 2016, Google CEO Sundar Pichai wanted to make Google, quote, an AI-first company.

So how could they be caught with their pants down like this?

Well, in a twist of irony, Google inadvertently gave open AI the keys to the castle.

In 2017, Google researchers published a paper that would silently change the world.

It outlined a method of processing text, images and more.

It was called a transformer, and their technique allowed an AI to focus on specific parts of an input rather than having to process the entire sequence.

This allows for more effective and efficient processing of language data.

So in a way, it was this groundbreaking work from Google scientists that later led to the development of OpenAI's chat GPT.

The problem for Google is that they moved too slowly, and this was due to safety concerns, and rightly so.

Such a large company has a lofty reputation.

An offensive or misleading AI would be of high reputational risk for Google.

In general, even though AI language models feel very human-like, they occasionally produce illogical or outright false information.

And due to these reasons, Google has released nothing publicly.

But the unavoidable consequence was frustrated researchers, so some of them have left to raise money for their own AI startups.

That being said, Google does have several language models for internal use, the most famous of which was Lambda.

This language model made headlines in June of 2022 when a former Google engineer claimed it was sentient.

While that may not be true, it was certainly sophisticated.

So let's wrap this episode up by taking a look at what we know so far about an AI-powered Microsoft search engine.

Microsoft is expected to launch Bing with some chat GPT features at the end of March.

There is still some growing speculation about how the AI system will be integrated into the search engine.

1 possibility is that chat GPT could allow users to just communicate with Bing in a more human-like way.

You don't have to worry about keywords, You just ask Bing the question in the same way that you would ask another person.

An anonymous Microsoft source told Bloomberg that more conversational and contextual responses to queries will win over users by providing better quality answers that go beyond links.

Bing is about to get the features of DALI2, that text-to-image generator that caused such a stir and kicked off this latest wave of AI art.

This integration will allow users to type in text and generate images.

This feature will be particularly beneficial for searches where images don't currently exist.

Essentially, it will allow users to create new images on demand.

Microsoft has said that they're working closely with open AI, so this feature doesn't generate explicit or inappropriate visuals.

So, it looks like Bing is getting a major overhaul with chat-gpt and DALI2 features integrated.

It sure is going to grab everyone's attention when it's launched.

How exactly this pans out still remains to be seen, but I certainly am intrigued and it will be interesting to see how this plays out.

So we may be on the cusp of a new era in which the search engine that we know becomes a thing of the past.

The digital directories of old will become the digital assistants of the future.

So I'm going to make it clear, Google search isn't going anywhere anytime soon, but it's so interesting to think that there could be a legitimate contender around the corner and from Microsoft being of all places.

Just think, a year or 2 ago no 1 would have seen this coming.

It's just amazing how fast things are moving.

Are link based search results going to expire?

Do you think you're going to warm up to an AI bot serving you the information that you need?

And finally, do you think Google will hit back faster than we all expect?

Please let me know in the comment section, it's going to be an interesting discussion.

Feel free to have a browse through the ColdFusion channel.

There's plenty of interesting topics on AI, technology, business and much more.

And also, don't forget to check out the chat GPT video linked below.

So thanks for watching, my name is Dagogo and you've been watching Cold Fusion and I'll catch you again soon for the next episode.

I'm gonna play you out with a new track I made over on

Don't ever think that I don't love you I told you so I told you I never find no 1 above you


Speaker 0: Hi, welcome to another episode of ColdFusion. This was Google in 1998.

Speaker 1: So we're right between that house and this house. We're renting this half of a house. Ping pong table, computer. Go to the other side of the office. There's Larry, CEO of Google.

Say something Larry. Hi.

Speaker 2: It was a small company run out of the garage of Susan Wojcicki, who is, interestingly, the current CEO of YouTube. Simply from recognizing the value of organizing information on the web, Google managed to grow from a few tinkering PhD students to a formidable giant that now owns over 90% of search and carries out over 8 billion search queries per day. For 2 decades now Google has been the undisputed king of web searches. The term Google has been synonymous with searching for information. Need a recipe or a movie review, or just settling an argument with a friend?

You can just Google it. With a net worth of $1.15 trillion in

Speaker 0: 2022,

Speaker 2: they seem unstoppable. So What exactly could make a massive company like Google panic, so much so that they issued an internal code red? Well, it's OpenAI's chat GPT of course. With Microsoft's plans to integrate the AI system into their search engine, Bing, Google search may face a serious threat for the first time in its history. Could this be 1 of the biggest technology story arcs in history?

While making this episode, I kind of felt like we're at the beginning of an AI war. So in the following, we'll learn what Google might do about the situation. They're actually already fighting back. We'll get into that. And we'll also see why exactly ChatGPT is such a threat to Google's central business model.

Let's take a look.

Speaker 3: You are watching Telefusion TV.

Speaker 4: Going to transform just about every industry including education. ChatGPT passed the US medical licensing exam, the bar exam and got a B on a Wharton MBA paper.

Speaker 2: A conversational chatbot capable of responding to any query in a human-like manner always seemed to be a technology of the future for the masses anyway until ChatGPT. Following its release, ChatGPT has garnered huge attention from around the world.

Speaker 5: To give you an idea of the scale of this moment, ChatGPT has been the fastest app in history to reach 100 million users. It's taken just 2 months, whereas TikTok took 9 and Instagram,

Speaker 0: 30.

Speaker 5: A rapid adoption rate is a classic early signal of a disruptive product or technology.

Speaker 2: A couple of months ago,

Speaker 5: we took a deep dive into ChatGPT. Since then, it's been updated and is better than ever. However, as I previously stated, it's important to know that it's not perfect and may sometimes give bias or outright incorrect information. If you want to see that episode on ChatGPT and to open AI's views on the future of these systems in more detail, the link for that episode can be found in the description below. Microsoft is looking to capitalise.

Namely, by putting this technology in their search engine, Bing. The massive implications of this will be discussed later in the episode. But for now, we've got to find out something. How did Microsoft and OpenAI get involved with each other in the first place? The alliance between the 2 started in 2019 when Microsoft invested $1 billion into OpenAI.

This was very crucial for both companies. OpenAI needed some cash as well as the computing power of Microsoft's Azure cloud services. This allowed the AI research firm to scale and drastically reduce its operating costs. Microsoft on the other hand was able to acquire OpenAI's intellectual property portfolio in the process. In essence, Microsoft now has access to some of the world's best AI technology, giving it a competitive edge over other major players in the tech industry.

Since then, Microsoft and OpenAI have been working together on various projects.

Speaker 4: And specifically, ChatGPT. CEO Satya Nadella is saying its impact will be, quote, at the magnitude of the personal computer, the internet, mobile devices, and the cloud.

Speaker 5: When Microsoft made the bombshell announcement that they were integrating ChatGPT into Bing, Google was in shock. An emergency code red situation was declared and I could imagine the frantic meetings. 1 Google executive told the New York Times, it was a make or break moment for the company. But wait, this is Google we're talking about. The company with far and away the world's leading search engine, they dominate 90% of search queries.

Microsoft, with their dinky little Bing, accounts for only 9% of worldwide desktop searches in

Speaker 0: 2022.

Speaker 5: So why is Google panicking? Google is looking at what might happen in the future and not what's happening today. Chatbots are not new, but the level of performance seen by ChatGPT definitely is. The thing that sets it apart from the MediCore chatbots of the past is that it's a generative pre-trained transformer, or GPT. In plain language, it just means that it's been trained on billions of parameters and petabytes of text.

This training allows the system to generate new text in a way that mimics the understanding of a wide range of queries and can respond accordingly. ChatGPT or the inevitable flood of AI assistance has the potential to revolutionize how we interact with search engines. Microsoft could see this as well, and that's why they've been betting on OpenAI and its technology. For a second, I just want you to stop and think about it. If an AI-powered search engine gave you the specific information or answer you want in a concise manner, but you could also ask further questions and drill down into the details that you want.

This would be revolutionary. You don't have to click through a bunch of links and waste your time. Right now, if you want a specific answer, You have to Google what you're looking for, get a bunch of results that may or may not fit, and if it's specific enough, you end up going to a forum anyway and searching through all the answers there. In this AI-powered search engine world, the answer would already be synthesized for you, and this is because the AI has already crawled through the whole web and read it already. And I think this is where AI-powered search will excel the most, for very specific problems.

Just this implication alone is huge. Obviously, if you want to know something political or something that could have a slant or bias, that's another story.

Speaker 6: It has Google shook a little bit, calling a code red. And there's a good reason for that. Chat GPT is potentially an existential threat to Google's business because Google relies 60% of its revenue on search, and ChatGPT offers an alternative to search, which is a one-stop question answering shop powered by AI. But this could change the game of search entirely, which is core to Google's business.

Speaker 5: If open AI integrates a ChatGPT-like language model into Bing's search engine, people will just be able to find the results that they need without having to scroll through a flat page of search results that are littered with ads. This may be good news for users, but for a company like Google, it's very bad news.

Speaker 2: And why is this so bad for Google? Because roughly

Speaker 0: 60%

Speaker 2: of their revenue comes from Google search. If the magnitude of this income becomes significantly damaged, it could be catastrophic.

Speaker 5: Google's business model is centred around advertising. It's been their long-standing primary source of revenue. By charging companies for promoted search links or AdSense links on websites, the company has built a lucrative business model. But it's clear that ChatGPT's integration with Bing has the potential to disrupt this entire system.

Speaker 2: If that doesn't sound bad enough, the creator of Gmail himself said that ChatGPT will destroy Google's business in 2 years. While I don't think this is the case because Google isn't going to just sit still as you'll soon see, it still is interesting that he said this.

Speaker 5: In January of 2023, the Department of Justice filed an antitrust lawsuit against Google. They stated, quote, Google has used anti-competitive, exclusionary, and unlawful means to eliminate or severely diminish any threats to its dominance over digital advertising technologies. This isn't to mention the 12, 000 Google employees that were recently let go. This is probably due to higher interest rates and a changing market. But still, all things considered, these are some of the biggest challenges Google has seen in its 20 years of dominance.

So it's no surprise that the company issued the code red. But here's the crazy thing. They even sought help from their co-founders, Larry Page and Sergey Brin, both of which had stepped down from their executive positions back in 2019 and have not been actively involved in the company's operations. According to the New York Times, the pair was invited to an executive meeting to strategize on how to integrate chatbot features into Google's search engine. They were also said to be devising a plan for the company's AI operations.

According to Forbes, Sergey Brin has requested access into Google's internal code and he was taking a look at

Speaker 2: some Lambda code. This could indicate that Google will be using Lambda in their response to OpenAI.

Speaker 5: When Google calls them the old guard,

Speaker 2: you know things are getting serious.

Speaker 5: Meanwhile, Microsoft is going all out. They're going to be investing an extra $10 billion into OpenAI. As part of the new agreement, Microsoft will receive

Speaker 0: 75%

Speaker 5: of OpenAI profits until it recoups its investment and then will hold a 49% stake in the company afterwards. Unfortunately, this is the antithesis of what the OpenAI company originally stood for. If all goes well, this may turn out to be 1 of the best business deals of the decade. Right now, Chrome is the default option for Android, and Google pays Apple huge sums of money just to be the default option on iPhones and macOS devices. This has no doubt worked wonders for Google in the past, especially since there's been no real alternative.

But now that Bing could eat some market share, I think Google will use their default status and dominating market share to their advantage while they hit back. This is how I think things may play out if Google gets their act together. So Google are probably going to rapidly prototype and release an AI-powered search engine competitor integrated into Google Chrome. And because Google Chrome is the default browser for so many, This new tool will gain widespread adoption without much effort and end up killing Bing AI before it really gets a chance to start. Now I could be wrong, but it just seems like Google has to make a major move like this.

It's reported that Google is working on 20 AI projects, including image generation tools, a product for prototype app testing, and even a green screen mode for YouTube creators. 1 of the most interesting pieces of research is MusicLM, an AI that can transform whistled or humming melodies into a certain style which is described in text. So it's clear that Google isn't sleeping. In a staff memo, CEO Sundar Pichai wrote, quote, I am confident about the huge opportunity in front of us. Thanks to the strength of our mission, the value of our products and services, and our early investments in AI, to fully capture it, we'll have to make some tough choices.

And I think that last sentence is key. It seems like Google may be forced to put the safety issues on the back seat and will just start unleashing the AI products. They could turn the playing field around quite quickly. And this is some news just in. According to CNBC, Google is currently testing a chat GPT competitor called Apprentice Barred internally with its employees.

And also, a group of engineers have left open AI and started their own AI company and the first product, Claude, is similar to ChatGPT but better in some cases. The company called Anthropic AI has already raised over 1 billion dollars and guess what? Google just invested 300 million. Things are really heating up now. But for those of you who are really into technology, something doesn't add up here.

Google has been working on AI technology for a long time, even as far back as 2016, Google CEO Sundar Pichai wanted to make Google, quote, an AI-first company. So how could they be caught with their pants down like this? Well, in a twist of irony, Google inadvertently gave open AI the keys to the castle. In 2017, Google researchers published a paper that would silently change the world. It outlined a method of processing text, images and more.

It was called a transformer, and their technique allowed an AI to focus on specific parts of an input rather than having to process the entire sequence. This allows for more effective and efficient processing of language data. So in a way, it was this groundbreaking work from Google scientists that later led to the development of OpenAI's chat GPT. The problem for Google is that they moved too slowly, and this was due to safety concerns, and rightly so. Such a large company has a lofty reputation.

An offensive or misleading AI would be of high reputational risk for Google. In general, even though AI language models feel very human-like, they occasionally produce illogical or outright false information. And due to these reasons, Google has released nothing publicly. But the unavoidable consequence was frustrated researchers, so some of them have left to raise money for their own AI startups. That being said, Google does have several language models for internal use, the most famous of which was Lambda.

This language model made headlines in June of 2022 when a former Google engineer claimed it was sentient. While that may not be true, it was certainly sophisticated. So let's wrap this episode up by taking a look at what we know so far about an AI-powered Microsoft search engine. Microsoft is expected to launch Bing with some chat GPT features at the end of March. There is still some growing speculation about how the AI system will be integrated into the search engine.

1 possibility is that chat GPT could allow users to just communicate with Bing in a more human-like way. You don't have to worry about keywords, You just ask Bing the question in the same way that you would ask another person. An anonymous Microsoft source told Bloomberg that more conversational and contextual responses to queries will win over users by providing better quality answers that go beyond links. Bing is about to get the features of DALI2, that text-to-image generator that caused such a stir and kicked off this latest wave of AI art. This integration will allow users to type in text and generate images.

This feature will be particularly beneficial for searches where images don't currently exist. Essentially, it will allow users to create new images on demand. Microsoft has said that they're working closely with open AI, so this feature doesn't generate explicit or inappropriate visuals. So, it looks like Bing is getting a major overhaul with chat-gpt and DALI2 features integrated. It sure is going to grab everyone's attention when it's launched.

How exactly this pans out still remains to be seen, but I certainly am intrigued and it will be interesting to see how this plays out. So we may be on the cusp of a new era in which the search engine that we know becomes a thing of the past. The digital directories of old will become the digital assistants of the future. So I'm going to make it clear, Google search isn't going anywhere anytime soon, but it's so interesting to think that there could be a legitimate contender around the corner and from Microsoft being of all places. Just think, a year or 2 ago no 1 would have seen this coming.

It's just amazing how fast things are moving. So what are your thoughts? Are link based search results going to expire? Do you think you're going to warm up to an AI bot serving you the information that you need? Will Bing become a verb?

And finally, do you think Google will hit back faster than we all expect? Please let me know in the comment section, it's going to be an interesting discussion. Alright, so that's about it from me. Feel free to have a browse through the ColdFusion channel. There's plenty of interesting topics on AI, technology, business and much more.

And also, don't forget to check out the chat GPT video linked below. So thanks for watching, my name is Dagogo and you've been watching Cold Fusion and I'll catch you again soon for the next episode. I'm gonna play you out with a new track I made over on

Speaker 2: the second channel. Cheers guys, have a good 1.

Speaker 7: I never put no 1 above you

Speaker 3: Cold fusion It's me thinking

Speaker 7: Don't ever think that I don't love you I told you so I told you I never find no 1 above you

See all ColdFusion transcripts on Youtube

Google Panics Over ChatGPT [The AI Wars Have Begun]